The Ascension of Nvidia
11 years ago, Apple, ExxonMobil, Alphabet, and Berkshire Hathaway dominated American corporate landscape. Today, only Apple and Alphabet reside in the top four, with Berkshire Hathaway displaced to No. 7, and ExxonMobil and Walmart ousted from the top 10.
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Nvidia: A Force to be Reckoned With
By 2035, Nvidia is poised to claim the mantle of the world’s largest company by market cap. The company’s meteoric growth, ballooning from $0.3 trillion to $2.2 trillion in less than two years, heralds its ascent to the apex of corporate giants.
NVDA Market Cap data by YCharts.
Nvidia’s dominance in the GPU market, set to skyrocket from $40 billion in 2022 to $400 billion by 2032, positions it as the frontrunner for the top spot. The company’s staggering 265% year-over-year sales growth, with projections of 82% growth this year and 37% annual growth over the next five years, heralds a revenue surge propelling it towards the zenith of corporate echelons.
Microsoft: The Paragon of Stability
With a current market cap of $3.2 trillion, Microsoft reigns as the world’s largest company, supplanting Apple last year. Fueled by the AI revolution, the company’s integration of AI tools into its software suite, coupled with its partnership with OpenAI, cements its status as a prime beneficiary of forthcoming AI advancements.
Projections of 16% sales growth per year for the next five years, culminating in potential revenue surpassing $475 billion by 2030, showcase Microsoft’s fortitude. While Nvidia may outpace it, Microsoft’s enduring growth signals a stalwart presence atop the corporate hierarchy.
Amazon: E-Commerce Exemplar
Amazon, currently America’s fifth-largest company with a $1.9 trillion market cap, is set to vault past Apple and Alphabet by 2035, clinching the third spot. Leveraging over 750,000 robots in its warehouses, coupled with AI-driven enhancements to its e-commerce platform, Amazon epitomizes the fusion of technological innovation with commercial prowess.
The Titans of Tech: Amazon and Meta Platforms’ Future Fortunes
Amazon’s crown jewel, Amazon Web Services (AWS), is poised to reap the benefits of the cloud computing shift in the decade ahead.
Amazon’s Ascendance
Amazon stands as one of the revenue giants, with a staggering $575 billion generated over the past year, nearing Walmart’s $648 billion. The rapid growth trajectory positions Amazon to potentially overtake Walmart in the near future. Forecasted revenue expansion at a remarkable 31% annually over the next five years could see Amazon’s annual revenue soar to $2.2 trillion by 2030, propelling it to the third spot in company rankings.
Meta Platforms in the Spotlight
Meta Platforms (NASDAQ: META), currently the sixth-largest American company by market cap, appears poised to surpass both Alphabet and Apple by 2035. With a flourishing ad business and cutting-edge AI development, Meta’s revenue is anticipated to grow by 26% yearly over the ensuing five years, culminating in a projected $429 billion annual revenue by 2030.
Meta, with its suite of popular apps like Facebook, Instagram, and WhatsApp, generating substantial free cash flow, is well-positioned to scale its market cap significantly in the upcoming decade, potentially overtaking industry peers by 2035.
Nvidia Investments: A Mixed Bag?
Before diving into Nvidia stock, consider this insight from the Motley Fool Stock Advisor. While Nvidia may not be among the 10 highlighted stock picks, the selection offers a promising outlook for investors seeking substantial returns. The service’s track record boasts outpacing the S&P 500 by more than threefold since 2002.
Investors mull over the potential investment allure of Nvidia, mindful of the varied market forecasts and expert recommendations. While uncertainties loom, the steadfast rise of tech behemoths Amazon and Meta Platforms indicate a promising landscape for tech investment seekers.
*Stock Advisor returns as of April 15, 2024